Taxation of Chargeable Gains Act 1992 (c. 12)

Part V U.K. Transfer of business assets

Chapter I U.K. General provisions

[F1 Transfer of business from company to shareholders U.K.

Textual Amendments

F1 Ss. 162B, 162C and cross-heading inserted (with effect in accordance with s. 61(6) of the amending Act) by Finance Act 2013 (c. 29), s. 61(1)

162B Disincorporation relief: assets (including pre-FA 2002 goodwill) U.K.

(1) This section applies where—

(a) a company transfers its business to some or all of the shareholders of the company, and

(b) a claim for disincorporation relief in respect of the transfer has been made under section 58 of the Finance Act 2013.

(2) The disposal and acquisition of any qualifying asset of the business included in the transfer is to be deemed to be for a consideration equal to the lower of—

(a) the sums allowable under section 38 as a deduction in the computation of the gain accruing to the company on the disposal of the asset in question, and

(b) the market value of the asset.

(3) In subsection (2) a “qualifying asset” means—

(a) goodwill, or

(b) an interest in land which is not held as trading stock.

(4) But subsection (2) does not apply to the goodwill of the business if section 162C applies to it.]